According to auditing standards,accounts receivable confirmations are required to be used
A)on every audit engagement.
B)if the client agrees in writing to the procedure.
C)if the balance is material.
D)if environmental risk is low.

Question

Quizplus · Accepted Answer

Auditing standards require accounts receivable confirmations to be used if the balance is material. This ensures that the auditor has obtained sufficient and appropriate audit evidence to support the completeness and valuation of the accounts receivable balance. The use of accounts receivable confirmations may not be necessary for every audit engagement, and is not dependent on the client's agreement or environmental risk.

According to Auditing Standards,accounts Receivable Confirmations Are Required to Be